A tangible or electronic record that evidences both a monetary obligation and a security interest in or a lease of specific goods is known as:
A)a negotiable instrument.
B)a document of title.
C)a promissory note.
D)chattel paper.

Question

Quizplus · Accepted Answer

Chattel paper is a document that establishes both a monetary obligation and a security interest in or a lease of specific goods. It can be either in a tangible or electronic form. Chattel paper is commonly used in secured transactions to establish the security interest of the lender or lessor in the goods. It is not a negotiable instrument as it does not meet the requirements of negotiability, and it is not a document of title as it does not provide evidence of ownership or possessory rights over the goods. A promissory note is a written promise to pay a certain amount of money on demand or at a specific time, but it does not create a security interest in any specific goods.

A Tangible or Electronic Record That Evidences Both a Monetary